Florida Insurance Commissioner Stops Allstate Hearing

Jan 15, 2008

As reported earlier, the two-day scheduled Allstate rate hearing before the Florida Office of Insurance Regulation (“OIR”) was terminated.  Following is the OIR’s press release regarding the issue.

Should you have any questions or comments, please do not hesitate to contact this office.


Florida Insurance Commissioner Stops Allstate Hearing

Company objects to providing necessary investigatory documents

TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today abruptly halted the scheduled two-day hearing into Allstate Companies’ reinsurance program, their relationships to risk modeling companies, insurance rating organizations and insurance trade associations.

Allstate was to have provided all appropriate company documents related to the above topics, but failed to do so.

“Allstate’s total lack of cooperation and responsiveness made it unproductive to continue the hearing,” said McCarty. “The bottom line is that it is not fair to Florida consumers that this company has not complied with our subpoenas and is not willing to explain to us their relationships with rating agencies, modeling companies and trade groups and how these relationships might have influenced the huge rate increases they have requested.

“I am as deeply concerned as any consumer at the lack of respect that Allstate has shown toward their statutory responsibilities.”

Commissioner McCarty advised those in the hearing that he was adjourning to consider his options. His options could include a fine, suspension or even revocation of Allstate’s certificate of authority – essentially taking away its right to do business in Florida. The commissioner expects to make his decision very soon.

“Allstate did provide some documents, but refused to provide documents specifically related to their communications with catastrophe modeling companies, insurance rating organizations and insurance trade associations,” said Office of Insurance Regulation General Counsel Steve Parton.

A copy of the subpoena is available to review by clicking here.

Allstate Floridian Indemnity and Allstate Florida Insurance Company have requested rate increases of 28.3 percent and 41.9 percent respectively. Encompass Floridian Indemnity requested a 38.4 percent increase, and Encompass Floridian Insurance Company requested a 39.7 percent increase.


To unsubscribe from this newsletter, please send an email to ccochran@cftlaw.com